refers to the revenue of the government
finance by means of participating in the distribution
of the social products, which is the financial resources
for ensuring the government to function. The contents
of government revenue have been changed several times.
Now it includes the following main items:
(1) Various tax revenues, including value added tax,
business tax, consumption tax, land value added tax,
tax on city maintenance and construction, resources
tax, tax on use of urban land, stamp tax, personal income
tax, enterprise income tax, tariff, tax on agriculture
and animal husbandry and tax on occupancy of cultivated
land, etc.
(2) Special revenues, including revenue collected from
imposing fee on sewage treatment, revenue collected
from imposing fee on urban water resources, and extra-charges
for education, etc.
(3) Other revenues, including revenue from the repayment
of capital construction loan, revenue from capital construction
projects, and donations and grants.
(4) Planned subsidies for the losses of the state-owned
enterprises. This is an item of negative revenue, used
to eat up part of the government revenue.

Government Expenditure

refers to the distribution and use of
the funds the government finance has raised, so as to
meet the needs of economic construction and various
causes. It includes the following main items:
(1) Expenditure for capital construction: It refers
to the non-gratuitous use and appropriation of funds
for capital construction in the range of capital construction,
outlay of capital as well as the loans on capital construction
approved by the government for special purpose or policy
purpose and the expenditure with discount paid in an
overall way within the amount of the funds appropriated
to the departments for capital construction.
(2) Innovation funds of the enterprises: They refer
to the funds appropriated from the government budget
for the enterprises to tap the latent power, upgrade
the technology and carry out innovation, including the
innovation fund of the departments, loan of the enterprises
for innovation, subsidies on the innovation of the small
fertilizer plant, small cement plant, small coal mines,
small machinery plant and small steel plant, the expenditure
of interest for the loan for innovation.
(3) Geological prospecting expenses: They refer to the
expenses appropriated from the government budget to
the geological prospecting units for the expenditure
of the prospecting work, including the expenditures
of the administrative agencies for geological prospecting
and their institutional units as well as the geological
prospecting expenditure.
(4) expenditures for science and technology promotion:
They refer to the expenses appropriated from the government
budget for the scientific and technological expenditure,
including new products development expenditure, expenditure
for intermediate trial and subsidies on important scientific
researches.
(5) Expenditure for supporting rural production: It
refers to the expenditures appropriated from the government
budget for supporting the various expenditures of the
rural collective units or households for production,
including the subsidies to the small water conservancy
projects and well drilling, sprinkling irrigation projects
run by the villages; subsidies on the rural water and
soil conserving measures; subsidies to the small power
stations run by the villages; subsidies to the expenditure
for fighting against particularly severe draughts; subsidies
on the rural waste land exclamation; fund for supporting
the township enterprises; subsidies to the expenditure
for popularization of the agricultural technologies
and plant protection in the rural areas; subsidies to
the expenditure for the protection of grasslands and
cattle and fowls; subsidies on afforestation and forest
protection in rural areas; subsidies on the rural aquatic
products industry; special fund for developing grain
production.
(6) Operating expenses of the departments of farming,
forestry, water conservancy and meteorology etc.: They
refer to the expenses appropriated from the government
budget for the expenditures of agricultural exclamation,
farms, agriculture, animal husbandry, agricultural machinery,
forestry, timber industry, water conservancy, aquatic
products industry, meteorology, technology popularization
in township enterprises, popularization (demonstration)
of improved varieties, plant (cattle and fowls, forest)
protection, water quality monitoring, prospecting and
designing, resources investigation, cadres training,
subsidies to horticulture gardens, expenditure of specialized
secondary schools, subsidies on the experiments of sowing
herbage seeds by flights, expenditures of afforestation
agencies and meteorology agencies, expenses for fishery
administration and operating expenses for agricultural
administration, etc.
(7) Operating expenses of the departments of industry,
transport and commerce: They refer to the expenses appropriated
from the government budget to the departments of industry,
transport and commerce for the expenditure of business
development, including expenses for prospecting and
designing, expenditures of specialized secondary schools,
expenditures of the technical training schools and expenditures
for cadres training, etc.
(8) Operating expenses of the departments of culture,
education, science and public health: They refer to
the expenses appropriated from the government budget
for the expenditures of the causes of culture, publication,
cultural relics, education, public health, traditional
Chinese medical science, free medical services, sports,
archives, earthquake, ocean, communications, broadcasting,
film and television, family planning; expenditure for
training of cadres of government, party and mass organization;
expenditures for natural sciences, social sciences,
associations for science and technology and the special
expenditure for the high-tech researches. They include
mainly wages, extra wages, welfare funds, pension for
the retirees, stipend, expenses for official business,
expenses for equipment purchases, expenses for repairs,
business expenses and subsidies to the units which are
unable to support their expenditures by their own earnings.
(9) Pension for the disabled or for the families of
the bereaved and relief funds for social welfare: They
refer to the funds appropriated from the government
budget for the expenditures of pension for the disabled
or for the families of the bereaved and relief funds
for social welfare, including the lump-sum or regular
pension paid by the departments of civil affairs to
the members of martyrs families and families of those
who died for the public interest, pension to the revolutionary
disabled, subsidies for permanent disability of various
kinds, subsidies to the military martyrs dependents
and the demobilized servicemen, expenditure for settling
down the demobilized servicemen, operating expenses
of the consoling institutions, expenses for management
and repair of the commemorative buildings for the martyrs,
the expenses managed by the departments of civil affairs
for the retirees and those who have quitted their work,
expenses for social relief in rural and urban areas,
operating expenses for providing relief to the areas
of natural calamity and subsidies on the reconstruction
after the particularly severe natural calamities, etc.
(10) Expenditures for national defence: They refer to
the funds appropriated from the government budget for
the expenditures for building up national defence and
safeguarding national security, including expenses of
national defence, expenses of scientific researches
on national defence, expenses for building up peoples
militia and expenditure for special projects, etc.
(11) Administrative expenses: They include expenditure
for administration, subsidies to the parties and mass
organizations, diplomatic expenditure, expenditure for
public security, judicial expenditure, law court expenditure,
procuratorial expenditure and subsidies to the expenses
for treating the cases by the public security departments,
procuratorial organs and law courts.
(12) Expenditure for price subsidies: It refers to the
expenditure appropriated, with the approval of the government,
from the government budget for the policy subsidies
to price adjustment, including the fund for the increase
of grain prices, the subsidies to the difference between
the selling prices and purchasing prices of grains,
cotton and edible oil, awards in addition to the purchasing
prices of cotton, risk fund for non-staple food, subsidies
on the prices of meat and meat products, subsidies on
the price difference for curbing the high market prices
of meat, meat products and vegetables and the subsidies
approved by the government on the prices of textbooks
and newsprint of newspapers and periodicals.

Revenue of the central government and revenue of
the local governments

In accordance with the classification
of the structure of the government finance in 1994 on
the basis of the classification of channels for collection
of tax revenues, the revenue of the central government
and the revenue of the local governments have different
coverage. The revenue of the central government includes
tariff, consumption tax and value added tax levied by
the customs, consumption tax, income tax of the enterprises
subordinate to the central government, income taxes
of the local banks, foreign-funded banks and non-bank
financial institutions, business tax, income tax and
profits of railways, head offices of banks, head office
of insurance company , which are handed over to the
government in a centralized way, tax on city maintenance
and construction, 75% of the value added tax, tax on
ocean petroleum resources, 50% of the tax on stock dealing
(stamp tax). The revenue of the local governments includes
business tax, income tax of the enterprises subordinate
to the local government, personal income tax, tax on
the use of urban land, tax on the adjustment of the
investment in fixed assets, tax on town maintenance
and construction, tax on real estates, tax on the use
of vehicles and ships, stamp tax, slaughter tax, tax
on agriculture and animal husbandry, tax on special
agricultural products, tax on the occupancy of cultivated
land, contract tax, 25% of the value added tax, 50%
of the tax on stock dealing (stamp tax) and tax on resources
other than the ocean petroleum resources.

Expenditure of the central government and expenditure
of the local governments

according to the different functions of
the central government and local governments in the
economic and social activities, the rights of affairs
administration are classified between the central government
and local governments; and the classification of the
expenditure between the central government and local
governments are made on the basis of the classification
of the rights of affairs administration between them.
The expenditure of the central government includes the
expenditure for national defence, expenditure for armed
police forces, the administrative expenses and various
operating expenses at the level of central government,
expenditure for key projects and the expenditure of
the central government for adjusting the national economic
structure, coordinating the development among different
regions and exercising the macro-economic regulation
and control. The expenditure of the local governments
includes mainly the administrative expenses and various
operating expenses at the level of local governments,
the expenditure for capital construction and technological
innovation with the funds raised by the local government,
expenditure for supporting rural production, expenditure
for city maintenance and construction and expenditure
for price subsidies, etc.

Extra-budgetary revenue and expenditure

Extra-budgetary fund refers to financial
fund of various types not covered by the regular government
budgetary management, which is collected, allocated
or arranged by government agencies, institutions and
social organizations while performing duties delegated
to them or on behalf of the government in accordance
with laws, rules and regulations. It mainly covers following
items: administrative and institutional fees, funds
and extra charges that are stipulated by laws and regulations;
administrative and institutional fees approved by the
State Council and provincial governments and their financial
and planning (price management) departments; funds and
extra charges established by the State Council and the
Ministry of Finance; funds turned over to competent
departments by their subordinate institutions; self-raised
and collected funds by township governments for their
own expenditure; and other financial funds that are
not covered in budgetary management. Social security
funds are treated as extra-budget fund and managed for
its exclusive use, given the circumstance that separate
government budgetary system for social security is yet
to be designed. Special accounts are opened by the financial
departments in banks for the management of revenue and
expenditure of extra-budgetary fund. Extra-budgetary
revenue and expenditure is managed separately, namely,
revenue of institutions and departments must enter into
the special accounts of the financial departments at
the same administrative level, and their extra-budgetary
expenditure is arranged in line with the extra-budget
plans and appropriated from these accounts.